Question

In finanace retrenchment compensation to employees treated as........
a.cash inflow
b.cash outflow
c.cost of capital​

Answer 1

Answer:

Option b) cash outflow

Explanation:

Compensation paid to retrenched employees is cash outflow or even you can say it is a revenue expenditure . These expenditure take place due to business operation and these expenditure are not for purchasing fixed assets.  

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